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New Tax Rates On Vehicles From April 2017

Posted 2017/3/10 by Motoshow Plates

As we previously discussed on our blog, new vehicle tax rates are set to be introduced by the government next month. The changes have been planned since summer 2016, and will come into force as of April 1st 2017 now that motorists have been given sufficient warning and a new tax year is beginning.

In fact, the current trend with VED (vehicle excise duty, usually known as road tax) rates started in 2015 when the government introduced adjustments to the rates based on carbon dioxide emissions. This action was designed to incentivise people to purchase low-emissions vehicles as these would fall into a lower VED bracket and therefore be cheaper to run.

On the previous system, the first year rate of tax was different for each band of vehicle based on their level of CO2 emissions per kilometer). For vehicles producing less than 130g/km or carbon dioxide, the first year rate was £0 before increasing slightly depending on the band. Under 100g/km, vehicles would be completely exempt from road tax.

The main difference under the new system is that only vehicles with absolutely zero emissions will be exempt from road tax (as long as they retail for less than £40,000). Above this level, even cars with relatively low emissions will be taxed more heavily. This is based on a flat rate plus an updated tiered system increasing at a steeper rate than it did previously. After five years, the tiered system no longer applies and only the basic rate will be paid.

You can see a summary of the specific changes in the form of this helpful table which we have put together. This sets out the first year tax rates for each tier of the system (increasing based on CO2 emissions), plus the flat rate of £140 for any vehicle which emits CO2 (with a £10 discount for hybrids and alternative fuels). On top of this is an additional £310 charge for cars of any fuel type with a list price of over £40,000.

The new changes will apply to vehicles registered on or after April 1st this year. To make sure your car is completely road legal, check your road tax has been arranged and paid appropriately.

You will also need to make sure this record matches up with your registered number plates. If required, you can use our plate builder to create custom number plates (including special features such as 3D gel fonts, badges, borders and more). Please note that we are legally required to check your documentation to ensure you own the registration mark before your plate can be produced and shipped.


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